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SME Bank unveils 5-year halal roadmap with RM2.41b funding 

KUALA LUMPUR: SME Bank Malaysia Bhd has introduced a five-year halal roadmap, anchored by its Islamic financing propositions valued at RM2.41 billion.

Its acting group president/chief executive officer Datuk Dr Mohammad Hardee Ibrahim said the roadmap is developed as a commitment to support the government's Halal Industry Master Plan 2030 (HIMP 2030).

"This roadmap supports the halal ecosystem through three core pillars, namely capacity building, product innovation and funding, alongside efforts for halal globalisation and are designed to help businesses obtain halal certification, whilst providing them with easier access to capital and empowering them to grow within the market, both in the domestic and international landscape," he said in a statement today.

Mohammad Hardee said the SME Bank is also one of the financial institutions mandated in the 2024 Budget to mobilise the HalalBiz Financing Programme that encourages micro, small and medium enterprises' (MSME) participation in the ecosystem.

He added that bank's Business Exports Programme (BEP) supports companies expanding

their capacity and capability for exports including in halal-related sectors. 

"As such, these certainly bodes well for our steadfast commitment in continuing to stimulate the growing halal segment.

"To-date, our financing portfolio for Halal-related sectors stands at approximately RM2.41 billion, representing about 27 per cent of the bank's total portfolio across various key affirmative segments of the economy," he said.

Through SME Bank's subsidiary, Centre for Entrepreneur Development and Research Sdn Bhd (CEDAR), the bank continue to energise the SME ecosystem through various business coaching sessions, halal certification consultations, and halal road shows, which are mobilised via the Halal Product Capacity Building Programme, the Halal Entrepreneurial Capacity Development Programme, and the Halal Technology Entrepreneurship Programme.

According to the Halal Industry Master Plan 2030, Malaysia's halal market is projected to reach RM523 billion and is targeted to contribute nearly 11 per cent to Malaysia's gross domestic product (GDP) by 2030. 

This growth is expected to create over 700,000 job opportunities, demonstrating the significant economic potential of the halal sector. Currently, the halal industry is contributing about 6.0 to 7.0 per cent of the country's GDP, with an estimated market valuation of RM64 billion.

The HIMP 2030 is a strategic initiative aimed at positioning Malaysia as a prominent leader in the global halal economy and was developed to catalyse the nations's strong footprint in the development of the halal industry and is anchored around seven strategic thrusts. 

These include enhancing halal-friendly policy and legislation, creating new and bigger market spaces, establishing a larger pool of halal industry experts, enhancing the quality and integrated infrastructure development, fostering thought leadership, producing more home-grown halal champions, and facilitating more competitive Bumiputera participation.

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